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A BILL TO BE ENTITLED
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AN ACT
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relating to limitations on increases in the appraised value of a |
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residence homestead for ad valorem taxation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 23.23, Tax Code, is amended by amending |
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Subsection (a) and adding Subsection (g) to read as follows: |
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(a) Except as provided by Subsection (g), the [The] |
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appraised value of a residence homestead for a tax year may not |
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exceed the lesser of: |
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(1) the market value of the property; or |
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(2) the sum of: |
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(A) five [10] percent of the appraised value of |
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the property for the last year in which the property was appraised |
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for taxation times the number of years since the property was last |
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appraised; |
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(B) the appraised value of the property for the |
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last year in which the property was appraised; and |
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(C) the market value of all new improvements to |
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the property. |
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(g) The commissioners court of a county may call an election |
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in the county to permit the voters of the county to determine |
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whether a percentage limitation on increases in appraised value |
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determined in the manner provided by Subsection (a)(2) using a |
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percentage that is greater than the percentage specified by |
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Subsection (a)(2)(A) but not more than 10 percent will apply to the |
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taxation of residence homesteads in the county by each taxing unit |
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having territory in the county. The election shall be held on the |
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date of the next general election for state and county officers. |
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The ballot proposition shall specify the proposed percentage |
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limitation on increases in appraised value. If a majority of the |
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votes cast at the election do not favor the establishment of the |
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proposed limitation, a subsequent election under this subsection |
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may not be held before the 10th year after the year in which the |
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election is held. If a majority of the votes cast at the election |
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favor the establishment of the proposed limitation, the limitation |
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applies beginning with the tax year following the year in which the |
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election is held and remains in effect until amended or repealed by |
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the voters of the county at a subsequent election called by the |
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commissioners court of the county. An election to amend or repeal |
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the limitation may not be held before the 10th year after the year |
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in which the proposition establishing the limitation was approved |
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by the voters. If the voters of a county amend or repeal a |
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limitation, the amendment or repeal applies beginning with the tax |
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year after the year in which the election is held. |
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SECTION 2. Section 42.26(d), Tax Code, is amended to read as |
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follows: |
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(d) For purposes of this section, the value of the property |
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subject to the suit and the value of a comparable property or sample |
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property that is used for comparison must be the market value |
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determined by the appraisal district when the property is a |
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residence homestead subject to a [the] limitation on appraised |
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value imposed by or established under Section 23.23. |
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SECTION 3. This Act applies only to the appraisal of |
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residence homesteads for ad valorem tax purposes for a tax year that |
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begins on or after January 1, 2008. |
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SECTION 4. This Act takes effect January 1, 2008, but only |
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if the constitutional amendment proposed by the 80th Legislature, |
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Regular Session, 2007, authorizing the legislature to limit the |
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maximum average annual increase in the appraised value of residence |
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homesteads for ad valorem tax purposes to five percent or less and |
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to permit the voters of a county to establish a higher limitation |
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not to exceed 10 percent on increases for residence homesteads in |
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the county is approved by the voters. If that amendment is not |
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approved by the voters, this Act has no effect. |